Nvidia's desktop GPU dominance grows to 88% as market returns to normal

Nvidia dominates desktop GPU market with 88% share as market stabilizes post-2022 disruptions.

: In Q1 2024, Nvidia's market share in desktop GPUs soared to 88%, while AMD held 12% and Intel nearly vanished. Despite a slight quarterly dip, GPU shipments are 39.2% higher than last year, reflecting a stable market. Nvidia's growth is bolstered by AI demand, with plans for new RTX 50 series GPUs.

Following the market upheavals caused by the pandemic, chip shortages, and global conflicts, the desktop GPU market has begun showing signs of stabilization in early 2024. According to Jon Peddie Research, total add-in-board shipments reached 8.7 million units in the first quarter, a 7.9% decrease from the previous quarter but a 39.2% increase year-over-year. Nvidia has significantly expanded its market share to 88%, up from 80% in the last quarter, benefiting from both a recovery in the PC market and increased demand for GPUs due to their pivotal role in AI technologies.

AMD's market share has stabilized at 12%, consistent with its position from the previous year, as Intel's attempt to gain footing in the desktop market dwindled to less than 1% from a brief peak. The decline in Intel's market share highlights the competitive challenges new entrants face in a market dominated by established players like Nvidia and AMD. While the market dynamics favor Nvidia, both AMD and Intel are gearing up to release new graphics cards, aiming to capture or regain market share in the forthcoming quarters.

Nvidia's dominance is underpinned not only by strong sales in the conventional PC market but also by its significant role in the AI sector, where GPUs are increasingly essential for training complex models. The company's market valuation skyrocketed to $3 trillion, reflecting the high demand for its AI-capable hardware. Looking forward, Nvidia plans to introduce its RTX 50 series GPUs, while AMD and Intel are also preparing new releases, suggesting an intensifying competition as the industry approaches a new growth phase.